Sources told NFL Network and the Houston Chronicle that the team is expected to release Thomas on Tuesday. The four-time Pro Bowl selection had 275 yards and two touchdowns on 23 receptions in seven starts with the Texans last season. The Denver Broncos traded Thomas to the AFC South squad in October.
Thomas, 31, tore his left Achilles in Week 16. He still is recovering from the injury. He also tore his right achilles following his rookie season.
He told the Chronicle in January that he was not "thinking about retirement." The Texans would have owed Thomas $14 million in 2019.
"My main priority right now is getting back healthy. I can still play, man. I'm not thinking about retirement. I just don't know where it will be," Thomas told the Chronicle.
Thomas has 688 catches for 9,330 yards and 62 touchdowns in his nine-year NFL tenure.